Solid Revenue Growth with Continued Operating Leverage
AI Investments Contributing to Business Growth and Efficiency Enhancement
HONG KONG, Nov. 13, 2025 /PRNewswire/ — Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB Counter), “Tencent” or “the Company”), a world-leading Internet and technology company in China, today announced the unaudited consolidated results for the quarter ended 30 September 2025 (“3Q2025”).
Mr. Ma Huateng, Chairman and CEO of Tencent, said, “During the third quarter of 2025, we achieved solid revenue and earnings growth, reflecting healthy trends across games, marketing services, and fintech and business services. Our strategic investments in AI are benefitting us in business areas such as ad targeting and game engagement, as well as in efficiency enhancement areas such as coding, and game and video production. We are upgrading the team and architecture of our HunYuan foundation model, whose image and 3D generation models are now industry leading. As HunYuan’s capabilities continue to improve, our investment in growing Yuanbao adoption, and our effort in developing agentic AI capabilities within Weixin, will gain further traction.”
3Q2025 Financial Highlights
Revenues: +15% YoY, gross profit: +22% YoY, non-IFRS[1] operating profit: +18% YoY
- Total revenues were RMB192.9 billion, up 15% over the third quarter of 2024.
- Gross profit was RMB108.8 billion, up 22% YoY.
- On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
- Operating profit was RMB72.6 billion, up 18% YoY. Operating margin increased to 38% from 37% last year.
- Net profit was RMB 72.8 billion, up 19% YoY.
- Net profit attributable to equity holders of the Company for the period was RMB70.6 billion, up 18% YoY.
- Basic earnings per share were RMB7.769. Diluted earnings per share were RMB7.575.
- On an IFRS basis:
- Operating profit was RMB63.6 billion, up 19% YoY. Operating margin increased to 33% from 32% last year.
- Net profit was RMB64.9 billion, up 20% YoY.
- Net profit attributable to equity holders of the Company for the quarter was RMB63.1 billion, up 19% YoY.
- Basic earnings per share were RMB6.952. Diluted earnings per share were RMB6.779.
- Capital expenditure was RMB13.0 billion, down 24% YoY.
- Free cash flow was RMB58.5 billion, flat YoY. Total cash was RMB493.3 billion, up 16% YoY. Net cash position totalled RMB102.4 billion, up 7% YoY.
- The fair value of our shareholdings[2] in listed investee companies (excluding subsidiaries) totalled RMB800.8 billion as at 30 September 2025, compared to RMB714.3 billion as at 30 June 2025. The carrying book value of our shareholdings in unlisted investee companies (excluding subsidiaries) was RMB345.2 billion as at 30 September 2025, compared to RMB342.3 billion as at 30 June 2025.
- During 3Q2025, the Company repurchased approximately 35.4 million shares on the Hong Kong Stock Exchange for an aggregate consideration of approximately HKD21.1 billion.
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[1] Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others |
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[2] Including those held via special purpose vehicles, on an attributable basis |
3Q2025 Management Discussion and Analysis
Revenues from VAS increased by 16% year-on-year to RMB95.9 billion for 3Q2025. Domestic Games revenues were RMB42.8 billion, up 15% year-on-year, primarily reflecting contributions from recently released games such as Delta Force, growth in revenues from evergreen games such as Honour of Kings and Peacekeeper Elite, and the expansion of VALORANT from PC to mobile. International Games revenues were RMB20.8 billion, representing a 43% year-on-year increase (42% on a constant-currency basis), mainly due to higher revenues from Supercell’s games, recognising revenue upfront on copy sales of new game release, and to consolidation of recently acquired studios. Social Networks revenues rose by 5% year-on-year to RMB32.3 billion, due to growth in Video Accounts live streaming revenue, music subscription revenue and Mini Games platform service fees.
Revenues from Marketing Services were RMB36.2 billion for 3Q2025, up 21% year-on-year. The growth was due to higher ad impressions, benefitting from increased user engagement and ad load, coupled with higher eCPMs, driven by AI-powered ad targeting. Advertising spending increased across all major industry categories during the quarter.
Revenues from FinTech and Business Services rose by 10% year-on-year to RMB58.2 billion for 3Q2025. FinTech Services revenue grew at a high single-digit percentage rate year-on-year, primarily due to higher revenues from commercial payment activities and consumer loan services. Business Services revenues grew at a teens percentage rate year-on-year, reflecting higher cloud services revenues, including those driven by increased enterprise customer demand for AI-related services, and higher eCommerce technology service fees arising from growth in Mini Shops GMV.
Operating Metrics
|
As at 30 September 2025 |
As at 30 September 2024 |
Year- on-year change |
As at 30 June 2025 |
Quarter- change |
||
|
(in millions, unless specified) |
||||||
|
Combined MAU of Weixin and WeChat |
1,414 |
1,382 |
2 % |
1,411 |
0.2 % |
|
|
Mobile device MAU of QQ |
517 |
562 |
-8 % |
532 |
-3 % |
|
|
Fee-based VAS |
265 |
265 |
stable |
264 |
0.4 % |
|
|
|
||||||
3Q2025 Business Review and Outlook
- For Mini Shops, we are systematically building a more vibrant transaction ecosystem, resulting in continued rapid growth in GMV. For example, we used foundation model capabilities to better understand user interests and thus improve merchandise recommendations.
- We enhanced AI features in Weixin to provide new services to users and to promote greater usage of Yuanbao with encouraging results.
- For our domestic games, Delta Force ranked among the top 3 games industry-wide by gross receipts during the quarter[4]. VALORANT MOBILE has become China’s most successful mobile game launch year-to-date[5].
- For our international games, Clash Royale‘s monthly DAU and gross receipts achieved all-time highs in September 2025. Newly released game, Dying Light: The Beast, has attained a “Very Positive” average user review score on Steam[6].
- Tencent Video maintained its lead in the long-form video industry with 114 million[7] subscriptions, and Tencent Music similarly maintained its lead in the music streaming industry with 126 million[8] subscriptions.
- We introduced our automated ad campaign solution, AIM+, under which advertisers can automate targeting, bidding and placement, as well as optimise ad creation, improving their return on marketing investment.
- Commercial payment volume grew at a faster rate than during the second quarter, as online payment volume grew robustly while offline payment volume trend improved, particularly in the retail and transportation categories.
- We enhanced HunYuan Large Language Model’s complex reasoning capabilities, especially in coding, mathematics, and science. HunYuan image generation model is ranked first globally among text-to-image models by LMArena[9].
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[4] Company data and Sensor Tower |
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[5] QuestMobile and Sensor Tower, by first month DAU and gross receipts of new releases, for 1 January to 12 November 2025 |
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[6] 87% positive player review as of 12 November 2025 |
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[7] The average daily number of subscriptions for 3Q2025 |
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[8] The average number of subscriptions as of the last day of each month during 3Q2025 |
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[9] As of 12 November 2025 |
For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.htmlhttp://www.tencent.com/ir, or follow us via Weixin Official Account (Weixin ID: TencentGlobal):
About Tencent
Tencent uses technology to enrich the lives of Internet users.
Our communication and social services, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Our targeted marketing services helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business services support partners’ business growth and assist their digital upgrade.
Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004.
Investor contact: IR@tencent.com
Media contact: GC@tencent.com
Non-IFRS Financial Measures
To supplement the consolidated results of the Group (“the Company and its subsidiaries”) prepared in accordance with IFRS, certain additional non-IFRS financial measures (in terms of operating profit, operating margin, profit for the period, profit attributable to equity holders of the Company, basic EPS and diluted EPS) have been presented in this press release. These unaudited non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group’s financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies.
The Company’s management believes that the non-IFRS financial measures provide investors with useful supplementary information to assess the performance of the Group’s core operations by excluding certain non-cash items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Group’s major associates based on available published financials of the relevant major associates, or estimates made by the Company’s management based on available information, certain expectations, assumptions and premises.
Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Group. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.
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CONDENSED CONSOLIDATED INCOME STATEMENT RMB in millions, unless specified
|
|||||
|
Unaudited |
Unaudited |
||||
|
3Q2025 |
3Q2024 |
3Q2025 |
2Q2025 |
||
|
Revenues |
192,869 |
167,193 |
192,869 |
184,504 |
|
|
VAS |
95,860 |
82,695 |
95,860 |
91,368 |
|
|
Marketing Services |
36,242 |
29,993 |
36,242 |
35,762 |
|
|
FinTech and Business Services |
58,174 |
53,089 |
58,174 |
55,536 |
|
|
Others |
2,593 |
1,416 |
2,593 |
1,838 |
|
|
Cost of revenues |
(84,071) |
(78,365) |
(84,071) |
(79,491) |
|
|
Gross profit |
108,798 |
88,828 |
108,798 |
105,013 |
|
|
Gross margin |
56 % |
53 % |
56 % |
57 % |
|
|
Selling and marketing expenses |
(11,468) |
(9,411) |
(11,468) |
(9,410) |
|
|
General and administrative expenses |
(34,259) |
(29,058) |
(34,259) |
(31,921) |
|
|
Other gains/(losses), net |
483 |
2,974 |
483 |
(3,578) |
|
|
Operating profit |
63,554 |
53,333 |
63,554 |
60,104 |
|
|
Operating margin |
33 % |
32 % |
33 % |
33 % |
|
|
Net gains/(losses) from investments |
2,820 |
3,066 |
2,820 |
2,638 |
|
|
Interest income |
4,256 |
3,996 |
4,256 |
4,121 |
|
|
Finance costs |
(3,756) |
(3,531) |
(3,756) |
(3,941) |
|
|
Share of profit/(loss) of associates and |
7,854 |
6,019 |
7,854 |
4,473 |
|
|
Profit before income tax |
74,728 |
62,883 |
74,728 |
67,395 |
|
|
Income tax expense |
(9,785) |
(8,900) |
(9,785) |
(11,351) |
|
|
Profit for the period |
64,943 |
53,983 |
64,943 |
56,044 |
|
|
Attributable to: |
|||||
|
Equity holders of the Company |
63,133 |
53,230 |
63,133 |
55,628 |
|
|
Non-controlling interests |
1,810 |
753 |
1,810 |
416 |
|
|
Non-IFRS operating profit |
72,570 |
61,274 |
72,570 |
69,248 |
|
|
Non-IFRS profit attributable to equity |
70,551 |
59,813 |
70,551 |
63,052 |
|
|
Earnings per share for profit (in RMB per share) |
|||||
|
– basic |
6.952 |
5.762 |
6.952 |
6.115 |
|
|
– diluted |
6.779 |
5.644 |
6.779 |
5.996 |
|
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME RMB in millions, unless specified |
||
|
Unaudited |
||
|
3Q2025 |
3Q2024 |
|
|
Profit for the period |
64,943 |
53,983 |
|
Other comprehensive income, net of tax: |
||
|
Items that may be subsequently reclassified to profit or loss |
||
|
Share of other comprehensive income of associates and joint ventures |
(722) |
155 |
|
Transfer of share of other comprehensive income to profit or loss upon disposal |
(92) |
– |
|
Net (losses)/gains from changes in fair value of financial assets at fair value |
(18) |
20 |
|
Transfer to profit or loss upon disposal of financial assets at fair value through |
(5) |
– |
|
Currency translation differences |
(3,895) |
(2,909) |
|
Net movement in reserves for hedges |
308 |
(880) |
|
Items that will not be subsequently reclassified to profit or loss |
||
|
Share of other comprehensive income of associates and joint ventures |
12 |
52 |
|
Net gains from changes in fair value of financial assets at fair value through |
17,479 |
33,578 |
|
Currency translation differences |
(966) |
(153) |
|
Net movement in reserves for hedges |
(14) |
19 |
|
12,087 |
29,882 |
|
|
Total comprehensive income for the period |
77,030 |
83,865 |
|
Attributable to: |
||
|
Equity holders of the Company |
76,499 |
82,179 |
|
Non-controlling interests |
531 |
1,686 |
|
OTHER FINANCIAL INFORMATION RMB in millions, unless specified |
|||
|
Unaudited |
|||
|
3Q2025 |
3Q2024 |
2Q2025 |
|
|
EBITDA (a) |
80,357 |
64,397 |
79,467 |
|
Adjusted EBITDA (a) |
86,698 |
69,656 |
85,122 |
|
Adjusted EBITDA margin (b) |
45 % |
42 % |
46 % |
|
Interest and related expenses |
3,206 |
3,145 |
3,541 |
|
Net cash (c) |
102,422 |
95,462 |
74,592 |
|
Capital expenditures (d) |
12,983 |
17,094 |
19,107 |
|
(a) EBITDA is calculated as operating profit minus other gains/(losses), net, and adding back depreciation of property, plant and (b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues (c) Net cash represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, including (d) Capital expenditures primarily consist of investments in IT infrastructure (including computer equipment, components, and
|
|||
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
||||
|
RMB in millions, unless specified
|
||||
|
Unaudited |
Audited |
|||
|
As at 30 September, 2025 |
As at 31 December, 2024 |
|||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Property, plant and equipment |
140,463 |
80,185 |
||
|
Land use rights |
22,489 |
23,117 |
||
|
Right-of-use assets |
16,680 |
17,679 |
||
|
Construction in progress |
9,542 |
12,302 |
||
|
Investment properties |
955 |
801 |
||
|
Intangible assets |
212,459 |
196,127 |
||
|
Investments in associates |
321,278 |
290,343 |
||
|
Investments in joint ventures |
6,708 |
7,072 |
||
|
Financial assets at fair value through profit or loss |
208,447 |
204,999 |
||
|
Financial assets at fair value through other comprehensive income |
417,503 |
302,360 |
||
|
Prepayments, deposits and other assets |
24,556 |
42,828 |
||
|
Other financial assets |
1,411 |
1,076 |
||
|
Deferred income tax assets |
29,943 |
28,325 |
||
|
Term deposits |
78,685 |
77,601 |
||
|
1,491,119 |
1,284,815 |
|||
|
Current assets |
||||
|
Inventories |
550 |
440 |
||
|
Accounts receivable |
52,357 |
48,203 |
||
|
Prepayments, deposits and other assets |
103,016 |
101,044 |
||
|
Other financial assets |
4,525 |
4,750 |
||
|
Financial assets at fair value through profit or loss |
23,742 |
9,568 |
||
|
Financial assets at fair value through other comprehensive income |
8,256 |
3,345 |
||
|
Term deposits |
226,146 |
192,977 |
||
|
Restricted cash |
3,579 |
3,334 |
||
|
Cash and cash equivalents |
159,982 |
132,519 |
||
|
582,153 |
496,180 |
|||
|
Total assets |
2,073,272 |
1,780,995 |
||
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) |
||||
|
RMB in millions, unless specified |
||||
|
Unaudited |
Audited |
|||
|
As at 30 September, 2025 |
As at 31 December, 2024 |
|||
|
EQUITY |
||||
|
Equity attributable to equity holders of the Company |
||||
|
Share capital |
– |
– |
||
|
Share premium |
57,750 |
43,079 |
||
|
Treasury shares |
(2,514) |
(3,597) |
||
|
Shares held for share award schemes |
(7,182) |
(5,093) |
||
|
Other reserves |
158,719 |
47,129 |
||
|
Retained earnings |
965,307 |
892,030 |
||
|
1,172,080 |
973,548 |
|||
|
Non-controlling interests |
88,435 |
80,348 |
||
|
Total equity |
1,260,515 |
1,053,896 |
||
|
LIABILITIES |
||||
|
Non-current liabilities |
||||
|
Borrowings |
200,696 |
146,521 |
||
|
Notes payable |
127,382 |
130,586 |
||
|
Long-term payables |
11,750 |
10,201 |
||
|
Other financial liabilities |
5,358 |
4,203 |
||
|
Deferred income tax liabilities |
21,416 |
18,546 |
||
|
Lease liabilities |
13,069 |
13,897 |
||
|
Deferred revenue |
3,852 |
6,236 |
||
|
383,523 |
330,190 |
|||
|
Current liabilities |
||||
|
Accounts payable |
128,749 |
118,712 |
||
|
Other payables and accruals |
83,354 |
84,032 |
||
|
Borrowings |
52,193 |
52,885 |
||
|
Notes payable |
10,655 |
8,623 |
||
|
Current income tax liabilities |
17,222 |
16,586 |
||
|
Other tax liabilities |
4,601 |
4,038 |
||
|
Other financial liabilities |
5,121 |
6,336 |
||
|
Lease liabilities |
5,300 |
5,600 |
||
|
Deferred revenue |
122,039 |
100,097 |
||
|
429,234 |
396,909 |
|||
|
Total liabilities |
812,757 |
727,099 |
||
|
Total equity and liabilities |
2,073,272 |
1,780,995 |
||
|
RECONCILIATIONS OF THE GROUP’S NON-IFRS FINANCIAL MEASURES TO THE NEAREST MEASURES PREPARED IN ACCORDANCE WITH IFRS |
|||||||||||||
|
As reported |
Adjustments |
Non-IFRS |
|||||||||||
|
RMB in millions, unless specified |
Share-based compensation |
Net |
Amortisation of intangible assets |
Impairment provisions/ |
SSV & CPP |
Others (f) |
Income tax effects |
||||||
|
Unaudited three months ended 30 September 2025 |
|||||||||||||
|
Operating profit |
63,554 |
7,188 |
– |
1,622 |
– |
206 |
– |
– |
72,570 |
||||
|
Share of profit/(loss) of associates |
7,854 |
909 |
(555) |
1,755 |
(1) |
– |
360 |
– |
10,322 |
||||
|
Profit for the period |
64,943 |
8,097 |
1,703 |
3,377 |
(4,798) |
321 |
360 |
(1,207) |
72,796 |
||||
|
Profit attributable to equity holders |
63,133 |
7,905 |
1,730 |
3,003 |
(4,805) |
321 |
360 |
(1,096) |
70,551 |
||||
|
Operating margin |
33 % |
38 % |
|||||||||||
|
Unaudited three months ended 30 September 2024 |
|||||||||||||
|
Operating profit |
53,333 |
6,377 |
– |
1,324 |
– |
240 |
– |
– |
61,274 |
||||
|
Share of profit/(loss) of associates |
6,019 |
985 |
60 |
1,433 |
12 |
– |
– |
– |
8,509 |
||||
|
Profit for the period |
53,983 |
7,362 |
(6,610) |
2,757 |
3,788 |
304 |
– |
(653) |
60,931 |
||||
|
Profit attributable to equity holders |
53,230 |
7,180 |
(6,664) |
2,591 |
3,766 |
304 |
– |
(594) |
59,813 |
||||
|
Operating margin |
32 % |
37 % |
|||||||||||
|
Unaudited three months ended 30 June 2025 |
|||||||||||||
|
Operating profit |
60,104 |
7,361 |
– |
1,614 |
– |
169 |
– |
– |
69,248 |
||||
|
Share of profit/(loss) of associates |
4,473 |
903 |
(798) |
1,544 |
226 |
– |
– |
– |
6,348 |
||||
|
Profit for the period |
56,044 |
8,264 |
(2,396) |
3,158 |
(372) |
751 |
– |
(683) |
64,766 |
||||
|
Profit attributable to equity holders |
55,628 |
8,071 |
(3,192) |
2,848 |
(405) |
751 |
– |
(649) |
63,052 |
||||
|
Operating margin |
33 % |
38 % |
|||||||||||
|
Note: |
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